Global • Concentrated • Fundamental
At Cook & Bynum, we are long-term investors in undervalued businesses that have sustainable competitive advantages and are run by well-aligned managers. We identify these businesses through immersive, on-the-ground research around the world, and we think carefully about which companies fall within our circle of competence. Since 2001, we have consistently applied this single strategy in global public equity markets to companies of all sizes.
Our Investment Principles
Disciplined to Price
We demand a margin of safety, as we only invest if we can pay a significant discount to our informed, conservative estimate of a company’s intrinsic value. This discipline offers asymmetric risk vs. reward - it allows for outsized returns when we are correct and protects against permanent capital loss when we make mistakes.
We search for investments across geographies, market capitalizations, and most industries, while recognizing the limits of our circle of competence. Our ability to recognize our limitations is as important as our ability to execute our competencies.
Long-Term & Decisive
We are focused on the long-term operational performance of a company rather than the short-term market fluctuations of its stock price. We complement patience with the preparedness for quick, decisive action when mispricings arise.
We invest only in our best, most compelling ideas. In the 20 years since our inception, we have made 35 distinct investments and rarely own more than 10 businesses at a time. We are dedicated to fully knowing what we own.
We work for clients who share our values and philosophy and are focused on growing wealth over decades, not quarters. To best align our incentives with our clients' goals, our partners invest all of our own money exclusively in our funds (and not in separate personal accounts).